SECONDHAND MARKET
In terms of S&P activity, the week ended with 46 sales reported in the secondhand and demolition market posting a 25% positive w-o-w change. The highest activity has been recorded for the third consecutive week in the newbuilding market with more than 80 new contracts reported worldwide.
Strong activity has been witnessed in the gas segment for this week, while modern container sales including time charter agreements have attracted strong buying interest. In the tanker segment, an enbloc resale of two VLCCS of 320,000 dwt at region
$100 mil each have grasped the headlines of the week, while in the bulk carrier segment the activity is quite soft with asset prices still not reflecting the current status of the freight market.
Overall, 46 vessels reported to have changed hands this week at a total invested capital in the region of US$ 612.25 million. In terms of the reported number of transactions, the S&P activity has been marked with a remarkable 43% positive w-o-w change, while is up by 109% comparable with previous year’s weekly S&P activity when 22 vessels induced buyers’ interest with bulk carriers grasping the lion’s share, 63% share and tankers only 27% of the total volume of S&P activity. In the recent week, tankers, including gas carriers have attracted investors’ appetite grasping 54% share of the total business. In terms of invested capital, the most overweight sector for this week appears to be the tanker segment (including gas carriers) at a total invested capital more than
$300 mil.

NEWBUILDING MARKET
In the newbuilding market, the ordering sentiment has been boosted from last week’s activity with eager business in all segments. The week ended with 88 orders reported in total, equalling a total deadweight of around 5,1 mil tons. The ordering momentum has been increased by 137% from last week’s activity with a remarkable 289% positive w-o-w change in the bulk carrier segment. In terms of invested capital, it is difficult to estimate which segment has been the most overweight as the contract price has not been revealed for 86% of the total number of the new orders recorded. The protagonists have been the bulk carriers of all sizes and containers in the large / post panamax segment, grasping 39% and 15% respectively of the total ordering activity. At a similar week in 2010, 19 new contracts had been reported with bulk carriers winning 63% share of the total volume of contracts and tankers
26%.
In the bulk carrier segment, some business has been uncovered in Japanese yards, but there is still a dearth of export business due to the strength of the yen against dollar. Most of the contracts have been placed by domestic owners mainly at family owned yards or chartered out by the builders with purchase options by the charterer. An order grasping the headlines of this week was for a VLOC by Hong Xiang Shipping of China in the domestic yard Yangfan Group at a price of $50 mil each. It is quite surprising the market to witness orders for such large size vessels at a time when there is a serious supply related issue in these vessel categories.
In the gas tanker segment, Greek owner Angelicousis has decided to switch three VLCCS ordered in June 2008 at $154 mil each to LNG carriers of around 150,000 cu.m in Daewoo as a better investment although no employment has yet been secured. Furthermore, Daewoo has won one more order from Norwegian owner Awilco for two LNG units of 160,000 cu.m at a cost of region $200 mil each. Additionally, the energy company Pertamina is planning to order its first very large gas carrier of 84,000 cbm and Hyundai Heavy Industries is expected to be the frontrunner of the order.
In the container segment, the business continues with some signs of softness but the solid momentum is still there. Strong movements by Greek and foreign owners have been revealed for large size units. The Greek owner “Technomar Shipping” is said to have been in negotiations with South Korean yards for a series of wide, post panamax ships of 6,600 TEU. Additionally, Greek owner Costamare has placed a contract for five units of 8,800 TEU capacity in Sungdong of Korea for delivery 1q & 3q of 2013 at a total price more than $1 bn. Hong Kong’s Orient Overseas has returned to Samsung Heavy Industries to order four more units of 13,000 TEU at a total price of $544 mil, $136 mil each, as an extension of the original order placed on March for six such vessels at
$816 mil.
In the offshore segment, newbuilding business has been revived from last week with 15 orders reported in total, centred on the platform supply vessels and anchor handlers. Furthermore, a remarkable order came to light this week by Samsung Heavy Industries for a floating oil production and storage vessel with Teekay Petrojarl of Norway worth $693 million for delivery on July
2015.

DEMOLITION MARKET
In the demolition market, the week closed with some positive news for the buyers in Chittagong to import units and stock their yards as two months extension has been granted amid fears for a possible market shutdown. Scrap prices are still holding solid with India offering the best levels and Bangladesh standing one step behind to narrow the price gap. Pakistan and China are in a constant battle, but their levels are lagging behind and with the two months extension in Bangladesh it seems harder to outpace their rivals in terms of price levels and scrapping tonnage. Demo countries are offering $500-$510/ldt for dry and $520-$540/ldt for wet cargo, while the oncoming monsoon period may ease traditionally the soaring prices offered.
Hungry appetite for large size units persists with capesize tonnage being on the forefront and very large crude carriers being on the demolition scene. Abysmal freight rates for very large units either in the dry or wet market have enlarged even more the scrapping momentum.
The week ended with 18 vessels reported to have been headed to the scrap yards of total deadweight 1,372,536 tons. In terms of the reported number of transactions, the demolition activity is standing at the similar levels of last week with ongoing strong scrapping interest in VLCCS and capesize bulk carriers. Demolition activity in the bulk carrier segment is up by 300% from at similar week in 2010 when only 2 had been reported for scrap. In terms of scrap rates, the highest scrap rate has been achieved this week in the tanker sector for a VLCC tanker of 264,892 dwt “FALKONERA” at 33,334 /ldt for $540/ldt Bangladesh /Pakistan range. In terms of volume of transactions, India is still on the frontline by attracting this week 50% of the total demolition activity. At a similar week in 2010, demolition activity was down by 22%, in terms of the reported number of transactions with 14 vessels to had been reported for scrap of total deadweight 237 mil tons. China was the key player by paying $400/ldt for dry and $425/ldt for wet cargo and Bangladesh was offering just $375/ldt for securing dry and $410/ldt for wet cargo.

GREEK PRESENCE
Despite market fears for a slowdown of business from Greek owners, this week ended with a rejuvenated business in the newbuilding industry as 13 new contracts have been recorded, 6 in the bulk carrier segment by Niki Shipping, Kyla Shipping and Everlast, 2 in the gas tanker segment by Maran Tankers as a switch from VLCC and 5 units in the container post panamax segment by Costamare. In the secondhand market, strong purchase interest has been also revealed from Greek owners at a total invested capital region of more than $200 mil (  modern container units at a total invested capital of region $138 mil including time charter agreements, in the bulk carrier segment for a panamax vessel of 74,000dwt built 2007 at a price region $70 mi and a kamarmax resale at $42 mil, in the tanker segment for a suezmax unit at $15,2 mil).